E-mail, Feeds, 'n' Stuff

Monday, November 10, 2008

OnPoint update reflects continued hard times

We continue our series of quarterly snapshots of the operating results at OnPoint Community Credit Union -- a barometer of the economic times in Portland's neighborhoods. As might be expected, the third quarter (ended September 30) was pretty rough, and of course, that's before Black October set in.

The financials show ever more loan delinquency, and other investments that are losing value as well. The whole sad story, as officially reported to the National Credit Union Administration, is in this Excel file. Here are the numbers that we've been following with our untrained eye over the past year:

Item

9/30/07

6/30/08

9/30/08

Quarterly increase (decrease)

12-month increase (decrease)

Total investments

$239,660,803

$298,019,625

$246,342,512

(17.34%)

2.79%

Federal agency securities

$97,766,028

$153,595,595

$140,786,482

(8.34%)

44.00%

Total reportable delinquency - total delinquent loans

$3,525,641

$9,944,789

$14,302,884

43.82%

305.68%

Total reportable delinquency - indirect lending

$1,659,211

$3,736,341

$977,090

(73.85%)

(41.11%)

Total outstanding loan balances subject to bankruptcies

$4,595,702

$6,218,843

$9,979,220

60.47%

117.14%

Ratio of delinquent loans to total loans (percent)

0.17

0.45

0.63

Ratio of total delinquent loans to net worth (percent)

1.56

4.09

5.74

Delinquent loans are those delinquent for two months or more.

Year-to-date net income for the quarter ended September 30 was $16,329,466, down 18.12% from the same quarter last year ($19,943,990). For the second straight quarter, deposits fell, from $2,278,482,461 to $2,221,206,727 -- a 2.51% drop. Deposits a year earlier were $2,236,379,220, and thus for the year deposits fell 0.68%.

In addition to their loan problems, they aren't exactly savings friendly either. Their rates for savings are so low that we've move a huge amount of money and spread it amongst three stronger banks (all internet based - ING, Emigrant Direct, and HSBC) to be earning an average of 3.25% without having to tie up money for any fixed length of time. It completely accessible via a transfer request from the bank to Onpoint. Onpoint is losing a huge opportunity to repatriate funds if they would increase their niggardly saving rate. Their market rate funds pay less than 2%. I can do better at a dozen local banks and credit unions. The moment Onpoint took over, the rates on their savings account dropped to the levels seen in commercial banks. Pitiful.

We're people who don't need to borrow money but would happily supply capital to those who do, but we expect some return on investment. Onpoint doesn't do it for us.

Road Work

Miles run year to date: 155
At this date last year: 241
Total run in 2015: 271
In 2014: 401
In 2013: 257
In 2012: 129
In 2011: 113
In 2010: 125
In 2009: 67
In 2008: 28
In 2007: 113
In 2006: 100
In 2005: 149
In 2004: 204
In 2003: 269